Research Of The Function Of Government In Industrial Cluster Development

At the end of 1970s, industrial cluster came up successively in some developed countries such as Italy, America, Germany and France and soon reached other developing countries and areas. The competitive body has already exceeded the boundary of a single enterprise. The industrial cluster is formed silently. The industrial cluster has already become one factor of economic development of all countries in the world.The industrial cluster has its own rules in formation, development, upgrading and disappear, normally depending on the self-adjustment of market. However, from the very beginning, the government role in industrial cluster has been notice as a very important factor due to the"invisible hand"market is not omnipotent. Industrial cluster also has the "market failure", which requires the government to make up with the"invisible hand".The western economist already focus on the study of industrial cluster long before and they came up with a lot of insightful thoughts, among which the"diamond theory"is most famous. These results provide very useful help to academia, industry and relevant government departments to study industrial cluster, which more or less explained the role of government. Making sure what role the government played becomes very important after recognizing the function of government in industrial cluster development. If the positioning of government is inaccurate, it may play the role wrongly, which may bring side-effect to the industrial development, even ruin the whole industry.During the 30 years of reform and opening, along with the quick economic grow, the industrial cluster arise in our country, and become an important organization form and carrier of economic development in our country. Fengjing as the important gateway linking Zhejiang and Shanghai, played a leading role in industrial cluster development of Jinshan District in recent years. In this paper, I start from the theoretical analysis of industrial clusters, research the industrial development in this region, review the practice of industrial clusters development in Fengjing in recent years, and focus on the role of government in the formation and development of industrial clusters through analyzing the situation of our country or learning from the experience of developed countries. Then I proposed six measures, and comprehensively review the effect, the difficulties of implementation of each measure and the approach of solving problem. It will provide the reference of promoting the industrial clusters to county and township government institutions in our country.